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Speaker 1: This is Bloomberg Surveillance. If the British vote goes in

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Speaker 1: favor of Bredgas, that will be another sign that you

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Speaker 1: simply there aren't any givens anymore, bastor, don't believe the

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Speaker 1: FED will tighten as much as their guide. I would

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Speaker 1: argue that the FED tightening really began with the tapering

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Speaker 1: of asset purchases in the end of quantity of easing.

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Speaker 1: At least that's what financial markets told us. Bloomberg Surveillance

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Speaker 1: your link to the world of economics, Cliinance and Investment

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Speaker 1: on Bloomberg Rady and good morning everyone, Michael McKee and

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Speaker 1: Tom Keen worldwide, Bloomberg Surveillan's Good morning, Coast to coast,

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Speaker 1: Bloomberg twelve hundred, Boston. I'm picking myself up off with

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Speaker 1: the floor. The Associated Press reporting that Bill Lee Spaceman,

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Speaker 1: Bill Lee x Red Sox Pitcher running for Vermont governor.

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Speaker 1: You don't need to know anything else this morning except

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Speaker 1: that Good morning, Bloomberg twelve Boston, Bloomberg eleventh three O

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Speaker 1: New York, the Yankees six wins in a row, five baseball,

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Speaker 1: Good Morning Washington, nine FM, San Francisco Bay Area. All

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Speaker 1: of you across Baseball America. Serious the next UM shut

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Speaker 1: out one nineteen. We'll get to Wilbur Ross here in

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Speaker 1: a moment. Public surveillance brought you is always by kna Resnick.

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Speaker 1: Look Ahead, Gain insight, imagine more, get forward thinking advice

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Speaker 1: that can help turn business possibilities into business opportunities. Find

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Speaker 1: out more at cone Resnick dot com, c O h

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Speaker 1: N R e z n I c K dot com.

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Speaker 1: Where are you? Where do you suppose? Who do you

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Speaker 1: suppose that ability would talk to it? You know, if

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Speaker 1: he doesn't know, if he keeps it up for two weeks,

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Speaker 1: he's gonna be on the Trump ticket. I mean, for

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Speaker 1: what I know, Wilbur Ross with us w L. Ross,

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Speaker 1: And it's like, you know, we could talk to Wilbur Ross, folks,

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Speaker 1: full disclosure for four hours. We could spend the fourth

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Speaker 1: hour on the art market where Mr Ross. We could

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Speaker 1: spend half an hour on Yale University. We could spend

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Speaker 1: two hours on his radio career. This was a few

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Speaker 1: years back MacArthur was leaving the Philippines. But right now

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Speaker 1: we need to talk about Wilbur Ross. Why don't you

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Speaker 1: own a sports team? I mean, we all know you

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Speaker 1: are well healed. Do you have an interest in owning

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Speaker 1: the money making juggernaut of sports where you don't have

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Speaker 1: to build your next stadium. Well, the biggest mistake I've

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Speaker 1: made was not investing in the New York Yankees back

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Speaker 1: when it was being bought from CBS. My friend Bob

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Speaker 1: needle Lander very wisely did buy into it, and it's

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Speaker 1: probably been the best investment he's made. What's the worst

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Speaker 1: pro investment you've ever made? I mean, I mean, everybody

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Speaker 1: talks about your successes and banking cold. What's the single

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Speaker 1: dumbest thing you've ever done, like not owning the dreaded Yankees? Well,

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Speaker 1: that was one. The other was waiting so long to

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Speaker 1: buy my business from Roth Trial. I was a very

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Speaker 1: late bloomer. I bought the business when I was in

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Speaker 1: my sixties. That's late, Mike. What what would be the

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Speaker 1: biggest mistake somebody would make today? I think probably the

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Speaker 1: biggest mistake would be being too negative. I think there's

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Speaker 1: so much discontent out there, so much people gnashing their

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Speaker 1: teeth about this and that, that they're not perhaps focusing

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Speaker 1: on all the good things that are going on from

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Speaker 1: an investoral standpoint. Then tell me what what's good. What

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Speaker 1: what's going to drive an investment. Well, what we've been

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Speaker 1: doing of late is buying the distress bonds of oil

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Speaker 1: and gas producers in this country. The shale people, mostly

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Speaker 1: in the Permian Basin, some in the Eagle Forwards, some

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Speaker 1: in a few other of the very low cost formations

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Speaker 1: were inclined to think that when oil broke down through

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Speaker 1: thirty dollars a barrel a bit ago, that that kind

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Speaker 1: of mark the low Then, while we don't think it

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Speaker 1: gets back to a hundred anytime soon, doesn't need to.

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Speaker 1: If it gets into this fifties sixty dollar range, going

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Speaker 1: to be fine for the low cost can service the debt.

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Speaker 1: Or is it that somebody's going to buy those companies

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Speaker 1: and the debt will still be valid. Well, in some

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Speaker 1: cases it's one. Some cases will end up with the equity.

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Speaker 1: But um, we we think that demand for petroleum will

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Speaker 1: keep growing, albeit at a very small pace. We think

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Speaker 1: the new production of coming in where the US is

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Speaker 1: really going to be the swing producer. It's no longer

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Speaker 1: going to be Opec as the swing producer because there

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Speaker 1: are other than Iran. The Gulf countries are pretty much

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Speaker 1: at their effective capacity right now. There's very little unused capacity,

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Speaker 1: so US will be the big swing. And I think

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Speaker 1: the reason it won't go back to a hundred is

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Speaker 1: that long before a hundred, tremendous amount of US supply

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Speaker 1: would come back. Then our our equities priced to perfection.

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Speaker 1: Not in the Wilbur Ross world, but from your mortals.

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Speaker 1: Do they look at central bankers affecting policy and the

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Speaker 1: distortions of negative rates and can they bring that over

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Speaker 1: to equity instability down the road? Well it maybe. I

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Speaker 1: think that the fit of Reserve Board should have raised

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Speaker 1: rates already earnestly hope they do so in June, because

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Speaker 1: I think their vacillation on rates and making it into

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Speaker 1: a spectative sport has caused more trouble than the low

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Speaker 1: rates have produced good things. You and I had comments,

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Speaker 1: i'm gonna say in March on your support of Mr

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Speaker 1: Romney the last time around, and then your supportive Mr Trump,

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Speaker 1: and many on Global Wall Street were surprised by the

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Speaker 1: idea that you would support Mr Trump and your chastise

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Speaker 1: Governor Romney. There's been a little bit of news flows

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Speaker 1: since then. Bring us up to date on what you

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Speaker 1: would suggest. Speaker Ryan needs to do well. I think

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Speaker 1: that Speaker Ryan and more vodka place. Okay, continue, I

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Speaker 1: think Speaker Ryan and Donald Trump have had a very

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Speaker 1: good session. There was a news flash this morning suggesting

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Speaker 1: that Speaker Ryan maybe getting ready to endorse Mr Trump,

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Speaker 1: and I think that would be very constructive. If you

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Speaker 1: see the New Yorker article in the Washington Post, Kaplan

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Speaker 1: OpEd on not fascism, but elements of a certitude that

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Speaker 1: led to that kind of scary word being used. Have

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Speaker 1: you seen any indication that Mr Trump can move to

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Speaker 1: the middle of the Republican Party or capture the attention

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Speaker 1: of independent voters. Well, I think he has captured the

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Speaker 1: intention of independent voters. He did very well in those

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Speaker 1: primaries where people could cross over or where independence could vote.

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Speaker 1: It's also fascinating to me that the recent exit polls

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Speaker 1: have shown that something approaching of Bernie say Anders followers

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Speaker 1: say they'll vote for Trump, and I think that's because

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Speaker 1: they are interested in doing something outside of what's been

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Speaker 1: happening in Washington, and the two figures who represent the

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Speaker 1: most outside seemed to be Bernie Sanders and Donald Trump.

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Speaker 1: What again, from an investor's point of view, what of

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Speaker 1: Donald Trump's policies can you name one that makes economic sense. Yeah.

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Speaker 1: I think if you look at the direction in which

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Speaker 1: he's heading, he wants a stronger US. He wants a

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Speaker 1: US that makes more intelligent deals in trade and more

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Speaker 1: intelligent deals in providing defense for other countries. I think

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Speaker 1: those are perfectly logical. But he's provided no roadmap to

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Speaker 1: get there, no plan to get there. His tax cut proposal,

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Speaker 1: according to the Tax Policy Center, would leave US eleven

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Speaker 1: trillion dollars worse off. Uh. He doesn't seem to have

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Speaker 1: any plan other than trust me, I'll think of something. Well,

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Speaker 1: I don't think that's quite correct. In terms of the

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Speaker 1: trade deficit that we have, I think he will work

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Speaker 1: to revise some of the treaties we have. We have

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Speaker 1: made some bad treaties. I do think he's right, and

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Speaker 1: that if we pay for the defense of other countries

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Speaker 1: they ought to contribute to that. It's enough we're putting

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Speaker 1: our soldiers and sailors and airmen potentially in harm's way.

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Speaker 1: At least they can do is to pay for it.

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Speaker 1: Most countries in the developed world have far less defense

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Speaker 1: spending as a percent of g d P than we do,

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Speaker 1: and a portion of why we're spending so much as

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Speaker 1: we're subsidizing them. I have to ask, as as somebody

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Speaker 1: who's now lending his name to the Trump campaign, When

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Speaker 1: you look at the things he says, the way he campaigns,

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Speaker 1: doesn't it embarrass you? Well, his style is his style.

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Speaker 1: It's certainly not my style. But it has been effective,

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Speaker 1: and people say, well, is he really a good businessman?

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Speaker 1: Name me another candidate who has ever become a major

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Speaker 1: party nominee with spending as little money as he has spent.

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Speaker 1: If that isn't the business coup of the year, I

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Speaker 1: don't know what is. Should hitters like you who don't

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Speaker 1: support Mr Trump, should they cut it checked the secretary

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Speaker 1: of State? I mean, should they support Hillary Clinton? That

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Speaker 1: would be another more gracious way of translating it. Um.

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Speaker 1: I'm not a fan of Hillary Clinton, and so I

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Speaker 1: think that they should stick with Trump. I also think

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Speaker 1: if you believe in the two party system, and I

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Speaker 1: think the two party system is one of the reasons

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Speaker 1: why the US has not fallen into a lot of

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Speaker 1: the problems that Europe has. If you believe in the

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Speaker 1: two party system, you really should support your party's nominee.

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Speaker 1: And the reason for that is, if what we say

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Speaker 1: is well, I'll support the nominee accepted. It's him, and

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Speaker 1: I don't like. Then you're gonna end up with We

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Speaker 1: learned we could go on this well before ours. We

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Speaker 1: learned all this in Civics one on one. Why is

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Speaker 1: this nation having trouble respecting your view on the two

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Speaker 1: party system? What is collapsed? I'm not true the nation

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Speaker 1: is having trouble. I think that Donald Trump will be

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Speaker 1: elected president and it will prove my theory to be correct. Oh,

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Speaker 1: we should have you back soon. What are you doing tomorrow?

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Speaker 1: Wilbert Ross with us for those important comments, John Tucker

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Speaker 1: writing up a storm here of headlines. Mr Ross, of

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Speaker 1: course with important comments, and we should point out he

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Speaker 1: was a supporter of Governor Romney, as he's clearly now

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Speaker 1: of Mr Trump. Futures up eight down, features up sixty four,

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Speaker 1: that the two year yeld point nine three per cent. Alright,

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Speaker 1: let's check in now with Michael Barr and get the

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Speaker 1: latest world of national headlines. Mike Tom, thank you very much.

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Speaker 1: It could be a long day for the head of

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Speaker 1: the Transportation Security Administration d SA Administrator Peter Neffinger will

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Speaker 1: be before the House Homeland Security Committee. Lawmakers are looking

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Speaker 1: for answers today to the long lines at airport security.

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Speaker 1: Defager will also likely be pressed by members to explain

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Speaker 1: exactly what prompted the outsta of the agency. Top security

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Speaker 1: official Kelly Hogan. Congressional Investigators say the government and spends

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Speaker 1: about three fourth of its technology budget maintaining aging computer

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Speaker 1: systems on partisan government accountability offices in its report today

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Speaker 1: that the increasing cost of maintaining old equipment trains money

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Speaker 1: that could go for modernization. Global News twenty four hours

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Speaker 1: a day, powered by our und journalists and more than

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Speaker 1: a hundred fifty news bureaus around the world. On Mike Labar, Michael,

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Speaker 1: thanks so much. In currencies then one, ten, sixteen, some

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Speaker 1: really smart conversations this morning on currencies. I'll be blunt,

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Speaker 1: many different choices on dollar, strong dollar, stable dollar week,

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Speaker 1: or really all over the map d X y point

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Speaker 1: five three. This is Bloomberg's Surveillance. The news update brought

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Speaker 1: to you by Bank of American Mary Lynch, seeing what

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Speaker 1: others have seen, but uncovering what others may not. Global

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Speaker 1: Research that helps You Harness Disruption voted top global research

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Speaker 1: firm five years running. Merrilynch, Chris Fenner, and Smith in

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Speaker 1: corporate